Bates faces critical legal action

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The takeover of Leeds United by Ken Bates faces a last-ditch legal action from HM Revenue and Customs

HM Revenue and Customs have confirmed they will mount a legal challenge to Leeds United chairman Ken Bates’s buy-back of the club, after he formed a new company to save the League One side from administration.

The club’s creditors narrowly accepted his 1p-in-the-pound offer last month. It was a decision that angered the Inland Revenue, who are owed £7.7 million by the club in unpaid taxes, and had until 4pm today to announce formal action. Their concern was shared by Yorkshire MPs Phil Willis, George Mudie and Colin Burgon, who met with then economic secretary to the Treasury Ed Balls